UKEMA supports changes in the Secondary Capital Raising Review

The UK Equity Markets Association (UKEMA) has responded to the Secondary Capital Raising Review, led by Mark Austin.

Following constructive engagement with Mark Austin and his team, UKEMA’s response welcomes proposals to reform and simplify the existing system, including support for a reduction in the current rights issue process to 7 calendar days and a permanent increase in pre-emption rights to 20%,

UKEMA also re-iterated its support for the proposals within the Prospectus Regime Review to exempt companies whose securities are admitted to trading on stock markets from the public offer rules.

Sunil Dhall, Chair of the UKEMA said: ‘This is a significant and welcome review, and UKEMA is grateful to Mark Austin and his team for the considerable work they have undertaken. UKEMA’s response supports proposed reforms that would encourage greater retail participation and make it easier for companies to raise capital, as well as expressing our openness to learning from best practice from other jurisdictions”

The UKEMA’s response to the Secondary Capital Raising Review can be viewed here.

About UKEMA

The UKEMA represents those investment banks and equity brokerage firms that focus on raising capital for SMEs, particularly listed firms.

Its members trade in shares of over 2,000 quoted companies, accounting for 57% of London Stock Exchange turnover by volume in 2021, and produce research on over 1,700 companies, representing 87% of listed issuers.

UKEMA member firms facilitated investment of more than raised £6.7bn in funds for companies in 2021, supporting growth in the real economy, employment, innovation, entrepreneurship and wealth creation.